Realtors eye growing housing market

That's the thinking of several real-estate agents, who are anticipating the strongest spring housing market since at least 2008.

Open houses are well attended, buyer activity is up and there aren't enough houses on the market to meet growing demand, agents say.

"I'd say right now it's very active," said Richard Healey of Foster-Healey Real Estate in Leominster. "The biggest issue right now is inventory. There just aren't enough houses for sale right now."

Low interest rates and an increase in consumer confidence have boosted the number of first-time buyers, resulting in what is expected to be one of the busiest spring and summer seasons in several years, he said.

Christopher Doherty, president of the Northeast Association of Realtors and broker-owner at Prudential Howe Doherty in Andover, also believes the spring will be successful for buyers and sellers. The year-to-date sales of single-family homes have not been this strong since 2007, he said.

"It's shaping up to be a very, very vibrant market," Doherty said. "We've seen well attended open houses, and it's still a bit early on in the process. Once the snow leaves, then we should see more houses on the market. Some pretty significant snowstorms have stopped homeowners from getting them ready, but the snow will be gone soon.

"The employment picture has improved in the commonwealth, along with consumer confidence," Doherty continued.

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Doherty said the stagnant economy was a factor in postponing home-purchase decisions. He now sees a natural backup of demand in a market that is driven by historically low mortgage interest rates.

Doherty said the stagnant economy was a factor in postponing home-purchase decisions. He now sees a natural backup of demand in a market that is driven by historically low interest mortgage interest rates.

One local official, however, remains concerned about the high number of foreclosures and how it might affect the market.

"(The number of) foreclosures in the region aren't as much as from 2008 to 2011, but it's still a lot more than when the real-estate market is in especially good health," said Richard Howe Jr., register of deeds at the Northern Middlesex Registry of Deeds. "Foreclosures are still high by historic standards, and every foreclosure tends to be a drag on the price appreciation in the vicinity. It's also a signal that a lot of people are still underwater on old loans."

From 2001 to 2005, which was a healthy real-estate market, the registry district of Lowell and nine surrounding towns had fewer than 50 foreclosures per year, Howe said. But the number skyrocketed to 602 in 2008 and came in at 342 last year. In the first two months of 2013, there were 34 foreclosures in the district.

"Whereas in a really good year, there are less than 50 foreclosures in 12 months, so we're not there yet," Howe said. "There are signs of increasing sales -- I've seen some deeds recorded in Lowell at pretty good prices and that's a good sign. However, quite a few properties are going for low prices, which means the sellers are not getting the value they purchased at."

Pat Newport, an economist at IHS Global Insight in Lexington, predicts that home values will continue to rise in coming months, and the housing market will look much better next year.

"The probability is high that prices will keep rising, and we'll see fewer people underwater next year," Newport said. "The home sales are not great numbers this year, but we'll see higher home prices with low inventory."

The low inventory is due to a variety of reasons, Newport said. Residents are waiting for the market to turn around, they have negative equity in their homes and are stuck, and "we're not building enough homes," he said.

"But as home prices go up, then they can sell their homes and buy other homes," Newport said.

Healey said now is a perfect time to buy and sell. People looking are confident the value of homes on the market will appreciate.

"They don't feel like if they buy a house today it's going to be worth dramatically less next year," said Healey. "There's pent up demand. It's very difficulty to make a logical case that we're not going to see appreciation due to that demand."

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